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A look at the shareholders of Beijing Urban Construction Design & Development Group Co Limited (HKG:1599) can tell us which group is most powerful. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that used to be publicly owned tend to have lower insider ownership.
Beijing Urban Construction Design & Development Group is a smaller company with a market capitalization of HK$4.2b, so it may still be flying under the radar of many institutional investors. Our analysis of the ownership of the company, below, shows that institutions own shares in the company. Let’s delve deeper into each type of owner, to discover more about 1599.
See our latest analysis for Beijing Urban Construction Design & Development Group
What Does The Institutional Ownership Tell Us About Beijing Urban Construction Design & Development Group?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Beijing Urban Construction Design & Development Group already has institutions on the share registry. Indeed, they own 25% of the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Beijing Urban Construction Design & Development Group’s earnings history, below. Of course, the future is what really matters.
Hedge funds don’t have many shares in Beijing Urban Construction Design & Development Group. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.
Insider Ownership Of Beijing Urban Construction Design & Development Group
The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.
I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions.
Our information suggests that Beijing Urban Construction Design & Development Group Co Limited insiders own under 1% of the company. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It has a market capitalization of just HK$4.2b, and the board has only HK$456k worth of shares in their own names. Many tend to prefer to see a board with bigger shareholdings. A good next step might be to take a look at this free summary of insider buying and selling.